User financing of rural handpump water servicesRichard C Carter, Erik Harvey, Vincent Casey (WaterAid)IRC: Pumps, Pipes & ...
Handpump functionality (%)[Source: UNICEF/RWSN]100                                                    Population-weighted ...
Functionality v. year of installation                                             [Six districts of Tanzania, study by Hay...
Defining sustainability• Len Abrams: “... continuing to work over time ...”Or,• “... providing a permanent improved servic...
“... take me to your water pump”                           Do you have to pay for                           use of this wa...
Handpump maintenanceTypically 50 user householdsmay each agree to pay                       USD120 per annumUSD2.40 per an...
A spiral of unsustainable dependenceInadequate    combined with an    Inability or   tariff                        unwilli...
... not to mention ...• problems of managing cash at  village level• inappropriate (unmanageable)  technology• difficulty ...
The myth of community managed water supplyA rural community can manage its water supply on its own.Technology inherently i...
Conceptualising sustainability                                                           2. Full user                     ...
Two models of handpump maintenance[modified from Erich Baumann, SKAT/RWSN]     “Community management”                     ...
Unwilling or unable?• there is a general reluctance to  pay for improved water services  in rural settings• when users are...
Striving for sustainability1. Revenues are often / usually   grossly inadequate2. true life-cycle costs and costs   of ext...
A call for realism and commitment inrelation to sustainability• realism about what it takes• commitment to its achievement...
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2 user financing of rural handpump water services presentation

  1. 1. User financing of rural handpump water servicesRichard C Carter, Erik Harvey, Vincent Casey (WaterAid)IRC: Pumps, Pipes & PromisesNovember 2010 1
  2. 2. Handpump functionality (%)[Source: UNICEF/RWSN]100 Population-weighted 90 average 63% - reduces 90 80 80 78 coverage by one third 80 75 75 75 70 70 70 69 68 70 66 65 65 60 60 50 50 40 35 35 33 30 20 10 0 2
  3. 3. Functionality v. year of installation [Six districts of Tanzania, study by Haysom, 2006] 100% 90% Preponderance of 80% gravity schemes (with 70% lower failure rates)Functionality rate 60% 50% 40% 30% 20% 10% 0% 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Year constructed 3
  4. 4. Defining sustainability• Len Abrams: “... continuing to work over time ...”Or,• “... providing a permanent improved service ...”• A dynamic concept – this handpump doesn’t have to work forever, but this water supply service does.• Consistent with Triple-S: Sustainable Service .... 4
  5. 5. “... take me to your water pump” Do you have to pay for use of this water point? How much do you pay? How was the fee determined? Do you all pay? Every month/year? So how many of you are exempt? Do the rest of you always pay? And how much money is there in the kitty? What will happen if there is a serious breakdown? 5
  6. 6. Handpump maintenanceTypically 50 user householdsmay each agree to pay USD120 per annumUSD2.40 per annum. A proportion of households (say 10%) is exempted for USD105 per annum good reasons.In some years, because ofdrought, flood, pest or hail, USD35 per annumno-one pays. (average)Typical life-cycleannual cost ofhandpump USD235(Baumann, 2006) 6
  7. 7. A spiral of unsustainable dependenceInadequate combined with an Inability or tariff unwillingness to pay leading to Further Unaffordable unwillingness to Back to the repairs pay for poor swamp, and wait for the needed service next donor ... resulting in leading to Long down-time 7
  8. 8. ... not to mention ...• problems of managing cash at village level• inappropriate (unmanageable) technology• difficulty of obtaining spare parts• missing or broken tools• unresponsiveness of support services 8
  9. 9. The myth of community managed water supplyA rural community can manage its water supply on its own.Technology inherently increases dependence ... on spareparts, on skills, on support ...We are actually establishing a two-fold maintenancerequirement: Water user committee External support (to External limited ability both “hard” and intervention to maintain “soft” infrastructure Water supply technology 9
  10. 10. Conceptualising sustainability 2. Full user 9. To management Community-based, D E S IG N &I M P L E M E N T A T I O N participation. and monitoring externally- systems. 3. Technology fit supportedO&M EXTERNAL SUPPORT for purpose and system in place. chosen by users. 10. Technical • WUC functioning assistance to WUCs 4. Capital contri- • Revenues collected and users.1. Establish bution by users. and recordedneed, demand 5. High quality of • Upkeep andand relevant maintenance tasks 11. Recurrent cost implementation.service level. sharing. being undertaken 6. Appropriate • Strong links between tariff structure. user community and 12. Support to support organisation supply chains and 7. Environmental in place service providers. aspects properly • Environmental addressed. monitoring taking 8. Monitoring 13. In relation to place system in place externalities. 10
  11. 11. Two models of handpump maintenance[modified from Erich Baumann, SKAT/RWSN] “Community management” “Community management plus” • minor repairs are managed • minor repairs and a share of and financed* by users major repairs financed by users • there is little or no technical • local Government or other or institutional support permanent institution provides • repairs which are beyond back-up and support user capacity are not done • joint funding of O&M* • ... service falls into disrepair. • ... sustained service. * theoretically USD80pa or 13% of capital * total USD235pa or 40% of capital cost of cost of pump – actually USD25pa or 4% pump – split 28% (users), 60% (LG), 12% only. (central Government) 11
  12. 12. Unwilling or unable?• there is a general reluctance to pay for improved water services in rural settings• when users are convinced of the necessity of payment, the ability to pay varies enormously• so-called “dollar-a-day” poverty conceals the fact that many rural households handle in the order of one dollar per month in cash 12
  13. 13. Striving for sustainability1. Revenues are often / usually grossly inadequate2. true life-cycle costs and costs of external support need to be factored in – but research is needed to determine what these are, and how they vary3. realism about these costs actually leads to cost-saving4. action research is needed, using innovative financing and external support models 13
  14. 14. A call for realism and commitment inrelation to sustainability• realism about what it takes• commitment to its achievement 14

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